News

The number of US
states legalising daily fantasy sports (DFS) continues to grow, with Missouri
and Colorado the latest to have bills signed into law.

Missouri Governor Jay
Nixon signed H1941 into law Friday, putting DFS under the control of
the Missouri Gaming Commission.

The new legislation
sets out an annual licensing fee of either $10,000 or 10 per cent of the
applicant’s annual net revenue in the state, alongside an 11.5 per cent
tax on net revenue.

It also
introduces consumer protection measures such as the requirement for
operators to segregate player funds from operational funds and
to offer players self-exclusion tools.

“When a new frontier
of online betting is available at the touch of a screen, we have a
responsibility to protect consumers and young people,” Nixon commented. “I
appreciate the General Assembly for answering my call to bring forward
common-sense consumer protection to make sure fantasy sports gaming in Missouri
is operated responsibly and with accountability.”

In Colorado,
meanwhile, Governor John Hickenlooper has signed H1404 into law.

Like the Missouri
bill, players must be over the age of 18 and their funds must be kept
separate to operational funds. They must also be given tools to allow for
self-exclusion.

The Division of
Professions and Occupations (DPO), part of the Department of Regulatory
Agencies, is given responsibility for overseeing the sector, and will be
required to set out licensing and renewal fees.

Operators with less
than 7,500 users must only register with the DPO, while larger operators
are required to apply for a licence.

The Colorado
legislation has prompted a positive reaction from market leader FanDuel,
which described the bill as being “in line with the state’s best governing
traditions: smart regulation to protect consumers, but with a light-touch that
does not stifle innovation or interfere with access to fantasy sports for the
nearly 1m Coloradans who love to play.

“We hope Colorado will
be an incubator for the many innovative fantasy sports companies that are
sprouting up and growing exponentially, and that the state can become a real
home for this emerging sector of the tech industry,” the company said.

“We want to thank the
legislature, in particular the bill sponsors Rep. Majority Leader Duran, Sen.
Cook, Rep. Wist and Sen. Minority Leader Guzman, for their leadership on this
issue, and Governor Hickenlooper for signing the bill into law and protecting
fantasy players in the state of Colorado.”

The Colorado bill will
come into force on July 1st, while the Missouri legislation does not
have a set start date.

With Missouri and
Colorado joining Mississippi, Tennessee, Indiana and Michigan in legalising
DFS, New York and Pennsylvania are making efforts to follow. In New York
legislation has just three days to pass by June 16th, the end of the State
legislative session.

Meanwhile,
Pennsylvania is about to start the legislative process after Representative
George Dunbar introducedHB2150 last week.

Dunbar's
bill sets a 5 per cent tax on quarterly adjusted revenue and imposes a
licence fee of $50,000 or 7.5 per cent of the applicant’s adjusted revenue. It
has been referred to the House Gaming Oversight Committee for consideration.